Better to place it back into the loan itself and redraw later – only redraw for IP purposes.

Cheers

Jamie

Hi xkfalcon

Negative gearing isn't an issue per se – providing the property goes up in value at a rate higher than the cost of holding it.

Personally, I'm not  a big fan of the one stop shop – particularly those selling off the plan stock. Off the plan rarely makes for a good investment – particularly in a market that's not currently growing.

One of the major issues is when the valuation on the property doesn't come back at the purchase price – which can happen because the properties can be sold at a premium (there's big profits for the developers/sellers of this stock).

If you're keen on investing, then perhaps consider choosing your own independent professionals so you can avoid conflicts of interest. Choose your own finance person, accountant and solicitor. Source your own properties or engage an independent buyers agent to act on your behalf.

The fact that you've come to this forum indicates that alarm bells are already ringing for you.

Cheers

Jamie

Hello Paul and welcome aboard.

Haven't heard of them personally.

<edit>

What does that company offer? Do they sell off the plan property and finance it as well?

Cheers

Jamie

Good post and I agree.

Particularly in the current environment – OTP can be quite risky, especially if you have limited funds to contribute to the purchase. 

OTP does have its place. In a rising market, some investors willing to take the risk have done ok. This was generally the case in Canberra a few years back. Now – a lot of developments are going up. The supply is outstripping the demand and prices are adjusting accordingly.

Cheers

Jamie

Hiya Jane

Not sure if it helps (and it may be a bit outdated now) but there's a spreadsheet on our website that you can punch numbers into that will give you an idea of the holding costs. Don't let it replace your own due diligence or advice from other professionals such as accountants.

Cheers

Jamie

Hiya

A line of credit is an equity loan set-up against the property. 

Cross collaterisation is when the bank takes multiple properties to secure a debt – it's great for the bank, not so good for the customer.

Cheers

Jamie

Accountants and plain english don't mix

Richard Taylor had a recommendation for someone in Brissy recently. Not sure if that's too far away but if you do a search for Brisbane accountant you should come up with it.

Cheers

Jamie

No worries.

A good start would be a residex report or similar. Something that provides some comparable sales within the area. Your broker might have access to these.

Cheers

Jamie

If you're looking for a good BA – I'd just start a new thread asking for recommendations in whichever area you're honing in on.

I think some BA's offer a less comprehensive inspection/negotiating type services whereby the investor locates the property but has the BA on the ground inspects and negotiates – that could be a good option for you if you're keen to carry out a fair bit of the research yourself.

Cheers

Jamie

Hi Hannah

There's a couple of ways to approach this.

First, you can challenge the valuation by finding three comparable sales within the last 6 months that argue your case. 

Secondly, if that fails, have your broker order an upfront valuation via another lender. Hopefully you land a different valuer which ends in a different result.

Cheers

Jamie